WGU C211 Exam Questions with Verified Answers (Correct Update)
Question 1: Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational enterprises?
Answer: The new force view
Question 2: Economic gains come from international trade because one country's exported
goods, services or other items are unique, valuable, and difficult to duplicate to importing
country
Answer: Resource-based view
Question 3: What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Answer: Balance of Trade
Question 4: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational enterprises (MNE)
Question 5: Which type of managerial capability is both challenging and difficult to imitate?
Answer: Intangible capability
Question 6: What may precious, rare and hard to duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Page 1
, Question 7: Which theory of international trade states that poor countries often experience
faster rates of economic growth compared to wealthy countries?
Answer: The catch-up effect
Question 8: What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Answer: Commodity Exchange
Question 9: What happens to a country's real exchange rates and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Answer: Exchange rates depreciate, interest rates increase
Question 10: What is the easiest method non-financial companies use to handle currency
fluctuations?
Answer: Commodity Trading
Question 11: Which strategy minimizes the risk for unanticipated changes in future exchange
rates?
Answer: Currency Swap
Question 12: A company is looking for a location with an abundance of ground breaking
individuals, firms and universities. Which type of strategic goal is this company
demonstrating?
Answer: Innovation-seeking
Page 2
Question 1: Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational enterprises?
Answer: The new force view
Question 2: Economic gains come from international trade because one country's exported
goods, services or other items are unique, valuable, and difficult to duplicate to importing
country
Answer: Resource-based view
Question 3: What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Answer: Balance of Trade
Question 4: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational enterprises (MNE)
Question 5: Which type of managerial capability is both challenging and difficult to imitate?
Answer: Intangible capability
Question 6: What may precious, rare and hard to duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Page 1
, Question 7: Which theory of international trade states that poor countries often experience
faster rates of economic growth compared to wealthy countries?
Answer: The catch-up effect
Question 8: What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Answer: Commodity Exchange
Question 9: What happens to a country's real exchange rates and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Answer: Exchange rates depreciate, interest rates increase
Question 10: What is the easiest method non-financial companies use to handle currency
fluctuations?
Answer: Commodity Trading
Question 11: Which strategy minimizes the risk for unanticipated changes in future exchange
rates?
Answer: Currency Swap
Question 12: A company is looking for a location with an abundance of ground breaking
individuals, firms and universities. Which type of strategic goal is this company
demonstrating?
Answer: Innovation-seeking
Page 2
